What is Life Insurance Policy and why should you have it?

A Life Insurance policy is a contract between an insurance company and the insurance policyholder, where in lieu of the premium payment the insurance company provides a death benefit to the beneficiaries on the death of the insured and thereby preventing the financial effect of the insured’s death on the family. Life Insurance policy’s selection is based on the needs and goals of the insured. Term insurance plan, universal life insurance, and Whole Life Insurance are included in this.

Life Insurance

On the death of the person who has made a policy by depositing a specified value in life insurance, money is given according to the policy and terms of the policy made to Nominee of that person.

This policy is left to the family, especially because it has no faith in life, so most people adopt this policy so that after their death, their family can get some help in the form of money.

Personal Accident Insurance

In the Accidental Policy also, if the policyholder is injured or disabled after the person who has made a policy by depositing a specified value, the hospital’s expenditure is according to the terms and conditions.

The biggest advantage of the Accidental Insurance Policy is that you do not have to bear any kind of expenses after your accident occurs.

Medical and Health Insurance

In Medical and Health Insurance, you also submit a specified value to all the health-related matters of the policy person, such as the admission of the person in the hospital, the cost of medicines, the cost of operation, etc.

This policy is very important because every person suffers from a little bit of sickness every year. In this case, these policy companies also spend some regular check-upsevery year. Health insurance policy proves to be very helpful especially in the current era where our health gets compromised primarily because of our lifestyle.

Important points related to Life Insurance policy

Under the Life InsurancePlan, if theperson dies because of any reason, then the full sum insured of the sum assured is paid to the person who is nominated and the sum is many times more than the premium payment.

If the policyholder is not given the nominal amount together with the insured person, then he may also choose to give the option.

It also has your savings. After the maturity of the amount deposited in the life insurance, you get back to the sum insured.

Taking Life Insurance also gives you some relief in tax. Any Financial Planning cannot be completed without a Life Insurance policy.

A common man should have 10-12 times Life Insurance for his annual income. If your annual income is 5 lacs then you have a Life Insurance of 50-60 lakhs. The prime reason behind this is that if a person dies, then his family should get a lump sumamount of money so that if he is given a safe deposit, his interest will be around the person’s annual earnings and there is no economic crisis on the family.

If you want, you can also buy a Life Insurance policy online andyou can take advantage of this facility by visiting our company website.

Some rules to take life insurance

The policyholder should be stable both mentally and physically.

Entry age of the policyholder should be as per the insurance plan.

The documents of the policyholder should be correct, such as Aadhar card, age certificate, health check report, voter card, passport, and ration card etc.